Our estimated processing time for this application is 120 business days. See our timeline spreadsheet for updates.
Purpose of the Application
An owner can secure its share of oil or gas production from any pool it owns under the Oil and Gas Conservation Act (OGCA). We must review and authorize the owner’s declaration of a common purchaser of oil and gas under sections 50(1) and 51(1).
Sometimes an owner’s well is being drained by other wells producing in the same pool because the owner
- cannot secure a reasonable market for its gas, or
- cannot negotiate a share of the existing markets of other owners that have producing wells in the same pool.
To recover its share of gas, the owner has the option of applying for a declaration of a common purchaser.
Under the OGCA, a common purchaser must purchase production offered for sale to it without favouring one producer or another in the same pool. A common purchaser order would allow an owner that has been unable to secure its own market to share in the markets of other owners in the pool.
Applicants have the option of requesting that we direct
- the point at which the common purchaser will take delivery of gas offered for sale, and
- the proportion of gas that the common purchaser will purchase from each producer or owner offering gas for sale.
Historically, we have not received applications filed under section 50(1) for common purchasers of oil. We primarily deal with applications for common purchasers of gas under the same section.
Submit an Application
Companies must submit applications for a common purchaser through our Digital Data Submission (DDS) system. We will register each application and assign a reference number.
By submitting an application, the company accepts that its information is no longer confidential.
- We share all applications on our Public Notice of Application page to encourage public participation in the approval process.
- Anyone who believes they may be directly and adversely affected by an application can file a statement of concern (SOC). If we receive an SOC, it may take us longer to process the application.
- We will assign the application to a subject matter expert for initial review. If information is missing (i.e., the application is not complete and does not meet Directive 065 requirements), we will close the application. Otherwise, we will proceed with a full technical review. Our review determines whether
- drainage has occurred after the completion of a well on the applicant’s property, and if so, to what extent;
- opportunities have existed for the marketing of production from the applicant’s property, and if so, when and the nature of them;
- future prospects exist for marketing the production; and
- when an application is being made under sections 51(4)(a) or 51(4)(b) for designation of a delivery point or proportion of production to be purchased respectively, the applicant could not make reasonable arrangements on these matters.
- We may request additional information (through a supplemental information request) to complete our technical review.
- We will decide to approve, close, or deny the application. If we close it, the applicant may reapply without prejudice. If we deny it, the applicant can file an appeal through our appeal process.
- We will provide the applicant with a link to the letter with our decision, which is accessible for 30 days through the Integrated Application Registry. We will also share our decision on our Publication of Decision page.